UBS Cuts Price Target on Calpine Corporation (CPN) to $16 Ahead of 3Q Report

October 6, 2016 7:26 AM EDT
Get Alerts CPN Hot Sheet
Price: $11.93 +0.25%

Rating Summary:
    17 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 28 | New: 8
Trade CPN Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

UBS maintained a Buy rating on Calpine Corporation (NYSE: CPN), and cut the price target to $16.00 (from $17.00), ahead of the company's 3Q report. UBS is expecting 3Q EBITDA to be $679 Mn, compared to the Street's $702 Mn estimate.

Analyst Julien Dumoulin-Smith commented, "Looking ahead to 3Q results, we think shares could potentially remain under some pressure in tandem with the rest of the sector as both quarterly estimates and FY17 guidance released by all three peers will be likely weak. We see potential strategic repositioning into both retail and nascent efforts into renewables as received well, but see risks around substantial deleveraging (given ~6x Net Debt/EBITDA) as a key concern across the sector. With the most substantive asset value given willingness to transact, and private market transactions supporting our ~7x EV/EBITDA, we're confident this equity could lead a recovery in the sector."

For an analyst ratings summary and ratings history on Calpine Corporation click here. For more ratings news on Calpine Corporation click here.

Shares of Calpine Corporation closed at $12.33 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change

Related Entities


Add Your Comment